Ship Recycling Market Update Week 12 2026 | Eid Pause Slows Activity as Oil Prices Surge Above USD 100 and Supply Tightens

Week 12 of 2026 sees global ship recycling markets enter a seasonal pause as Eid holidays slow activity across key recycling destinations including Bangladesh, India, Pakistan, and Turkey. However, underlying market pressures continue to build.

Escalating geopolitical tensions in the Middle East remain the dominant macro driver, with oil prices briefly approaching 120 USD per barrel before stabilizing above 100 USD. Elevated energy prices are supporting freight markets, with the Baltic Dry Index holding above 2,000 levels. This is delaying the flow of end-of-life vessels into recycling yards.

In this episode, Ingrid and Henning discuss how rising oil prices, firm freight earnings, and a strengthening U.S. Dollar are tightening vessel supply while also pressuring recycling market fundamentals. Despite improved pricing levels across the subcontinent, a lack of available tonnage continues to limit transactions.

Bangladesh remains the price leader but recorded no meaningful deals due to the Eid slowdown and ongoing financing constraints. India faces pressure from rising energy costs and currency weakness but maintains a competitive advantage through its Hong Kong Convention compliant recycling yards. Pakistan shows improving sentiment with stable currency levels, strong steel prices, and expanding HKC certified capacity. Turkey remains subdued amid currency depreciation and regulatory challenges.

The key theme this week is clear. Strong pricing but no supply.

As markets prepare to reopen after Eid, attention turns to whether a short-term increase in recycling activity can materialize ahead of the monsoon season, or if elevated freight earnings will continue to delay vessel recycling decisions.

Key Market Developments This Week

• Eid holidays pause ship recycling activity across Bangladesh, India, Pakistan, and Turkey • Middle East conflict pushes oil prices above 100 USD, briefly nearing 120 USD per barrel • Baltic Dry Index remains firm above 2,000, supporting vessel earnings • Higher freight rates delay recycling supply as older vessels remain in operation • U.S. Dollar strengthens against regional currencies, pressuring recycling margins • Bangladesh leads pricing but records no transactions during the holiday week • Indian Rupee weakens while steel prices remain volatile amid supply concerns • Pakistan shows improving sentiment with stable currency and strong steel prices • Expansion of HKC compliant yards in India and Pakistan supports future green recycling demand • Turkey market remains quiet amid Lira depreciation and ongoing regulatory challenges